Consultant recommends updated development impact fees; city urged to adopt annual escalator
June 10, 2026 | Hawthorne City, Los Angeles County, California
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Lenny Zerati, the consultant hired to prepare Hawthorne's development impact fee (DIF) justification study, briefed the council on proposed fee changes intended to comply with state law (AB 602) and Government Code section 66000.
Zerati explained the methodological shift required by AB 602 (recommending a square-foot allocation for residential rather than per-unit or per-acre rates) and said the updated study adds previously omitted categories (city administration, storm drain) and consolidates residential categories. "The proposed development's residential total is $6.36 per square foot," he said, showing a per-category breakout that included police, parks and transportation components.
The consultant said the study identifies the statutory maximum fee but noted the council may set lower rates. He urged council to adopt an annual escalator tied to a construction-cost index to avoid revenue erosion between updates and recommended revisiting the study every eight years, or sooner if major development warrants reevaluation.
What the council did: Staff opened the public hearing and moved to adopt the nexus study and accompanying resolution; council approved the motion. The adopted resolution directs staff to amend the city's fee schedule and establish procedures for annual escalation consistent with the study.
What to watch: Developers and housing advocates often scrutinize fee increases; council will need to balance revenue needs with housing affordability and may choose a phased implementation or adjustments to specific categories.
Zerati explained the methodological shift required by AB 602 (recommending a square-foot allocation for residential rather than per-unit or per-acre rates) and said the updated study adds previously omitted categories (city administration, storm drain) and consolidates residential categories. "The proposed development's residential total is $6.36 per square foot," he said, showing a per-category breakout that included police, parks and transportation components.
The consultant said the study identifies the statutory maximum fee but noted the council may set lower rates. He urged council to adopt an annual escalator tied to a construction-cost index to avoid revenue erosion between updates and recommended revisiting the study every eight years, or sooner if major development warrants reevaluation.
What the council did: Staff opened the public hearing and moved to adopt the nexus study and accompanying resolution; council approved the motion. The adopted resolution directs staff to amend the city's fee schedule and establish procedures for annual escalation consistent with the study.
What to watch: Developers and housing advocates often scrutinize fee increases; council will need to balance revenue needs with housing affordability and may choose a phased implementation or adjustments to specific categories.
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